The chief executive of Flipkart, an Indian online store, stepped down from his post after a probe into an allegation of “serious” personal misconduct.
Binny Bansal is the co-founder of the online retailer which was established in 2007. He has since denied the allegations, however, he has stepped down as the firm said that the claim was at risk of becoming a distraction.
The departure of Bansal comes after Flipkart carried out an independent probe with Walmart, which acquired a majority stake in the Indian firm for $16 billion (£12.4 billion) last May for 77 percent of the biggest e-commerce company of India with the aim of gaining a much bigger slice of the fast-growing market. Flipkart has managed to maintain a lead over Amazon (AMZN) as it accounted for almost 40 percent of the online retail market of India when the deal with Walmart was signed.
However, six months in, the deal has lost some of its glory. Walmart informed its investors last October that the Flipkart acquisition would shave approximately $740 million off its quarterly profit.
The said investigation did not discover any evidence to corroborate the allegation, however, the companies disclosed that “it did reveal other lapses in judgement, particularly a lack of transparency” regarding the reaction of the Bansal to the situation.
It added: “Because of this, we have accepted his decision to resign.”
The company said that it had already been preparing a successor to Bansal. It said that Bansal has been considering leaving the firm for some time.
The company said that these plans would now be accelerated, while Kalyan Krishnamurthy, the fellow chief executive of the company, will continue in his role.
Flipkart stated: “As we look ahead, we have full confidence in the strength and depth of leadership across the company.”
It added: “We remain committed to investing for the long-term and are supportive of the leadership team’s desire to evolve into a publicly-traded company in the future.”